Malaysian sovereign bond yields ended little
changed on Thursday. Sentiment was slightly on the positive side,
supported by the stronger-than-expected 4Q2016 GDP data, which pointed to
a growth rate of 4.5% yoy, above +4.4% yoy projected earlier. On the
flipside, daily volume was heavier at RM3.9 billion, increased from RM2.4
billion registered on Wednesday, while flows were led by MGS Sep’18 and
Jun’31.

Thai govvies were quite stable across the curve
and yields fluctuated in a tight range of 1bp. Despite a rally in UST, LB
yields did not react higher as investors may wait and see the Thailand GDP
on Monday and details on Trump's fiscal stimulus. Foreign investors were
net sellers of Thai bond for the first time in the week at Bt919 million
on Thursday after hawkish Yellen comments and better-than-expected US CPI.

IndoGB were traded slightly firmer following the
better-than-expected Jan trade balance numbers ($1.4 billion against $823
million expectation and $992 million prior month)). Market bids were
strong but most of the buying action happened after the London open. BI
held its monthly meeting yesterday and held the 7-day reverse repo rate
steady at 4.75%.